“As we worked through Q4, the global economy decelerated sharply, particularly in China, affecting consumer demand for NVIDIA gaming GPUs,” Nvidia founder and CEO Jensen Huang said in a filing with the Securities and Exchange Commission.

“Also, with initial shipments of new high-end RTX GPUs selling above MSRP, some customers may have delayed their purchase while waiting for lower price points and further demonstrations of RTX technology in actual games.”

Nvidia cut its revenue guidance to $2.2 billion down from its previous expectation of $2.7 billion, sending shares down 18%.

In the wake of the warning, AMD — one of Nvidia’s biggest competitors in graphics processing units — is also under pressure, one day ahead of its earnings.

According to Rolland, the 2017 crypto boom led chip giants to overproduce graphic processing units for miners of digital coins, causing an inventory problem when they crashed in 2018 — and AMD has no place to hide.

“Remember that Nvidia is a month further in the reporting process versus AMD,” Rolland told Markets Insider. “Nvidia has already confessed fully to the amount of inventory that’s out there. AMD has only half confessed.”

AMD is set to report fourth-quarter results Tuesday, with analysts surveyed by Bloomberg expecting adjusted earnings of $0.08 a share on revenue of $1.45 billion.